Performance Based Pay Solution

Salary based on team and player performance would be a win-win for both sides … these numbers are dated, but the idea and formula would work today. Granted, the two sides would still fight over what HRR is – maybe us fans should decide.

A FAIR SALARY PROPOSAL FOR NHL PLAYER WAGES

This idea for a performance based pay system came about as a way to reward players who play well and to control the amount of money being paid to players who do not deserve millions of dollars. By limiting the amount of money paid to underperforming players, the cost to fans will be easier to justify. And easier to keep under control. It is important to remember that the fans pay the salaries of these players. Costs of attending pro sporting events have become prohibitive to many fans, with the corporate sector purchasing a larger number of tickets. One of the huge flaws in pro sports today is the guarenteed contract for how a player might potentially perform. When a player does not perform the way he is being paid to perform, it is of no consequence. They do not lose their contract, or have to give money back because they failed to live up to their end of the bargain.

Under this sytem, superstars will be paid like superstars. Valuable team players who block shots and throw their body around will be paid well. The fans will have a say in how their money is handed out. Players will receive pay for longevity. Contract disputes and holdouts will not be an ugly part of the game, because if a player has a monster season, he will be compensated immediately. No need for nasty arbitration hearings. No bartering over a players worth. If you perform well, you earn well. If your team performs well, you earn well. Should league revenues decrease, there is no calamity regarding high player contracts pushing a team over a reduced salary cap.

A few arguments that are often made to justify the large salaries of athletesare as follows : a) Athletes sacrifice so much to get where they are. b) Athletes careers are very short

In some cases, this is true, but not always. Lets put things into perspective. Anyone playing major junior or NCAA hockey gets either a free college education, or a lot of financial help with a college education. The contacts players make in regards to post career business opportunities are far superior to the contacts a regular person makes in the course of their life. Players are treated with celebrity status starting at the junior level, and enjoy the fringe benefits that go along with that status. Even when a player manages to play only a handful of games in the NHL, they will have been paid enough money to provide themselves with a college education, or to set up a business. Many North American born players get to play hockey in Europe for a living. Most NHL players earn over $ 1 million per year, and to be able to do this for a few years provides these players with financial security that most people only dream of. As far as sacrifice, yeah, some guys work hard to get to the big show. Some don’t. Simple as that. So I am not buying the so-hard-done-by angle. Especially when you consider that pro hockey players also have the best medical care available, and incredible physical fitness is a part of your job.

The whole point of my proposal is this : Let’s pay these athletes well, but let’s do it fairly, for them, for the owners, and for the fans. Pay elite players world class salaries. Pay avergage players substantial money, reflecting the privilege of being a pro athlete, but not paying them outrageous amounts. Eliminate the massive payday and long term contract to a player who is a flash in the pan. They will still make a good living, but it will be exactly in line with their contribution to the game.

With regards to the owners, who are often attacked as greedy, here is OpenIceHitter’s stance: They are the owners, whose money makes it all happen. If they want to make a bit of money, that is their call. But please keep it within reason. A greedy owner is no different than a greedy player or agent.

Keep in mind that this is a work in progress, and feedback is appreciated. Numbers are not written in stone. I expect certain parties to say that this is not workable because it is too complicated. That is b.s. The current salary cap is way more complex. And with guarenteed contracts, the current salary cap system is fatally flawed. The trend of long term, big dollar contracts is alarming. How will these work out in time? OpenIceHitter’s proposal deals with a percentage of the NHL revenues, and breaks it down according to performance.

It is simple and it is fair. Below are a few examples of how this pay system would reward players for their perfromance in 2007-08.

A COMPENSATION PROPOSAL

FOR THE NHL & NHLPA

This proposal has been designed to reward NHL hockey players for performance at the team and individual level, in a manner that is fair and in keeping with the current agreement in place between team owners and the players union, whereby the players receive 56% of revenues generated, as identified in the CBA.

The idea this proposal promotes is fair compensation for performance by players, at both the team and individual levels. It will reward players immediately for success, and continue to reward players as they perform well. Players will not miss an opportunity to be paid well because of a contract they signed as an entry level player that places them at the low end of the pay scale.This proposal will eliminate the practice of contracting players based on potential performance, and put an end to players being paid huge sums of money while not performing adequately. To have players in the minor leagues earning several million dollars per year, or to have a situation where a team is stuck with a big dollar, long term contract for a player who is not performing well, is not in the best interests of the game. The proposal will also eliminate the need for player agents, and eliminate the added expense to the cost of hockey that is passed on to fans because of the expense of player agents.

It is also designed with the fans in mind, to stabilize rosters and eliminate the high roster turnover due to free agency. It will bring back team building through the amateur draft and trading. A major complaint of fans in the era since player unions have pushed free agency is that it is hard to follow a team when the players ( especially big name ” star ” players ) come and go every few seasons. It is understood that rosters change through trading, the key part of trades before the ” free agency ” era being that a team gets approximately equal value back in a trade, as negotiated by each team.

This proposal will eliminate the ” cap factor “from the game. Accountants will calculate what players get paid, not what players are on your favorite team. The players will continue to earn incredible amounts of money, in line with how well they play, not in line with what leverage their agent has over a few desperate GM’ s. The focus will be back on the game, the on ice activity, not on number crunching.

OPERATING STRUCTURE

Teams obtain the rights to players through the amateur draft, or can sign undrafted players as free agents. Teams then retain the rights to a player until they opt to trade or release the players rights. The reason for this is twofold: First, playing sports for a living is a privilege, it not a regular job.This is not the same as deciding what fast food outlet you want to work for. Secondly, players rights need to be controlled by teams for fair play, to give all the teams an equal chance at success.

This proposal is based on a players share of revenues that provides each team with $58 million dollars for player wages. This is an arbitrary number that can easily be adjusted.

Goalies must play a minimum of 600 minutes to qualify as having played a full season. Pay will be pro rated for goalies who do not get 600 minutes versus a full season of 82 games x 60 minutes = 4920 minutes.

Salaries, bonuses and awards are all based on percentages and can easily be adjusted to fit a new figure of the players share of revenues.

Injured players salaries can be pro rated or insured, much the same way they are now.

———————————————————————————————————————————

MONETARY DISTIBUTION

TEAM WAGE POOL: $ 58,000,000.00

TEAM CONTRIBUTION TO LEAGUE AWARDS AND BONUSES: $ 4,000,000.00

TEAM CONTRIBUTION TO PLAYOFF AWARDS AND BONUSES: $ 3,000,000.00

MONEY TO BE DISTRIBUTED BY EACH TEAM TO ROSTER : $ 52,000,000.00

TEAM CONTRIBUTION TEAM BASE SALARY : $ 25,000,000.00

TEAM CONTRIBUTION TO PERFORMANCE BONUSES : $ 26,000,000.00

MONEY REMAINING FROM WAGE POOL : $ 0.00

——————————————————————————————————————

BASE SALARY $500,000.00 X 25 PLAYERS $ 12,500,000.00

BASE SALARY PRO RATED FOR PLAYERS NOT PLAYING A FULL SEASON. FULL SEASON IS DETERMINED BY CBA.

BONUS PER YEAR OF SERVICE IN NHL $ 100,000.00

25 PLAYERS X AVG 5 YRS X $ 100,000.00 $ 12,500,000.00

TOTAL BASE SALARY PAY $ 25,000,000.00

TOTAL PAID TO PLAYERS $ 25,000,000.00

INDIVIDUAL PERFORMANCE BONUS PAYOUTS( PER TEAM ):

82 GAMES PLAYED $ 250,000.00 X 4 PLAYERS $ 1,000,000.00

60 GAMES PLAYED $ 125,000.00 X 10 PLAYERS $ 1,250,000.00

40 GAMES PLAYED $ 75,000.00 X 6 PLAYERS $ 450,000.00

20 GAMES PLAYED $ 50,000.00 X 4 PLAYERS $ 200,000.00

( GAMES PLAYED BONUSES DO NOT COMPOUND )

TOTAL GAMES PLAYED BONUSES PAID $ 2,900,000.00

CUMULATIVE TOTAL PAID TO PLAYERS $ 27,900,000.00

TOP 15 SCORERS $ 2,250,000.00 SPLIT 15 WAYS $ 2,250,000.00

TOP 15 ICE TIME $ 2,250,000.00 SPLIT 15 WAYS $ 2,250,000.00

TOP 15 HITS $ 2,250,000.00 SPLIT 15 WAYS $ 2,250,000.00

TOP 15 BLOCK SHOT $ 2,250,000.00 SPLIT 15 WAYS $ 2,250,000.00

TOP 15 PLUS/MINUS $ 2,250,000.00 SPLIT 15 WAYS $ 2,250,000.00

BREAKDOWN:

1 15% = $ 337,500.00 6 $ 112,500.00 11 $ 90,000.00

2 13% = $ 292,500.00 7 $ 112,500.00 12 $ 90,000.00

3 11% = $ 247,500.00 8 $ 112,500.00 13 $ 90,000.00

4 9% = $ 202,500.00 9 $ 112,500.00 14 $ 90,000.00

5 7% = $ 157,500.00 10 $ 112,500.00 15 $ 90,000.00

( 6 – 10 SPLIT 25% 11 – 15 SPLIT 20% )

ADDITIONAL BONUS PAYMENTS ( PER TEAM ) SPLIT AMONG TOP 5 PLAYERS

GAME WINNING GOALS $ 500,000.00

SHORT HANDED GOALS $ 500,000.00

FACE OFF WINNING PCT $ 500,000.00

PENALTY MINUTES $ 500,000.00

BREAKDOWN

1 30 % = $ 150,000

2 25 % = $ 125,000

3 20 % = $ 100,000

4 15 % = $ 75,000

5 10 % = $ 50,000

TOTAL BONUSES PAID TO PLAYERS $ 16,150,000.00

CUMULATIVE TOTAL PAID TO PLAYERS $ 41,150,000.00

GOALIES PERFORMANCE BASED BONUS PAYOUTS – TEAM

EACH TEAM CONTRIBUTES $ 2,000,000.00 FOR TEAM BASED GOALIE BONUSES.

WINS $ 500,000.00

GOALS AGAINST AVERAGE $ 500,000.00

SAVE PERCENTAGE $ 500,000.00

MINUTES PLAYED $ 500,000.00

GAA AND SAVE PCT TO BE DIVIDED BASED ON HOW MANY GOALIES PLAY FOR EACH TEAM, WITH A MINIMUM OF 600 MINUTES PLAYED

ALL STAR GAME LOSING TEAM SPLITS $ 3,000,000.00

TOTAL TEAM PAID BONUS MONEY $ 21,200,000.00

CUMULATIVE TOTAL PAID TO PLAYERS $ 46,200,000.00

REGULAR SEASON TEAM PERFORMANCE BONUS PAY

EACH TEAM WILL PUT $ 5,000,000.00 INTO A POOL FOR A LEAGUE STANDING BONUS. MONEY IS DIVIDED EVENLY ON PRO RATED SYSTEM BETWEEN PLAYERS ACCORDING TO WHERE THEIR TEAM FINISHES IN REGULAR SEASON STANDINGS.

30 TEAMS X $ 5,000,000.00 = $ 150,000,000.00

THIS POOL WILL BE DIVIDED AS FOLLOWS :

1ST – $ 15,000,000.00 16th – $ 5,000,000.00

2ND – $ 14,000,000.00 17th – $ 4,000,000.00

3RD – $ 12,500,000.00 18th – $ 3,500,000.00

4th – $ 10,000,000.00 19th – $ 3,000,000.00

5th – $ 9,000,000.00 20th – $ 2,500,000.00

6th – $ 8,000,000.00 21st – $ 2,000,000.00

7th – $ 7,500,000.00 22nd – $ 1,750,000.00

8th – $ 7,000,000.00 23rd – $ 1,500,000.00

9th – $ 6,500,000.00 24th – $ 1,250,000.00

10th- $ 6,000,000.00 25th – $ 1,125,000.00

11th- $ 5,750,000.00 26th – $ 1,000,000.00

12th- $ 5,500,000.00 27th – $ 750,000.00

13th- $ 5,250,000.00 28th – $ 500,000.00

14th- $ 5,125,000.00 29th – $ 200,000.00

15th- $ 5,050,000.00 30th – $ 0

EXAMPLE : 1ST PLACE TEAM DIVIDES $ 15,000,000.00 BETWEEN 25 PLAYERS FOR AN INDIVIDUAL PLAYER PAYMENT OF A $ 600,000.00 BONUS.

29TH PLACE TEAM DIVIDES $ 200,000.00 BETWEEN 25 PLAYERS FOR AN INDIVIDUAL PLAYER PAYMENT OF A $ 8000.00 BONUS.

TOTAL TEAM BONUS MONEY PAID $ 26,200,000.00

CUMULATIVE TOTAL PAID TO PLAYERS $ 51,200,000.00

PLAYOFFS – TEAM PERFORMANCE BONUS PAY

PLAYOFF BONUS PAYMENTS COME FROM THE $ 90,000,000.00 FUND, WITH EACH OF THE 30 TEAMS CONTRIBUTING $ 3,000,000.00.

STANLEY CUP CHAMPIONS : $ 25,000,000.00 BETWEEN 25 PLAYERS FOR AN INDIVIDUAL PLAYER PAYMENT OF A $ 1,000,000.00. BONUS

STANLEY CUP FINALISTS : $ 15,000,000.00 BETWEEN 25 PLAYERS FOR AN INDIVIDUAL PLAYER PAYMENT OF A $ 600,000.00 BONUS

CONFERENCE FINALISTS : $ 10,000,000.00 BETWEEN 25 PLAYERS FOR AN INDIVIDUAL PLAYER PAYMENT OF A $ 400,000.00 BONUS

SEMI – FINALISTS : $ 2,000,000.00 BETWEEN 25 PLAYERS FOR AN INDIVIDUAL PLAYER PAYMENT OF A $ 80,000.00 BONUS

TOTAL TEAM BONUS MONEY PAID $ 29,200,000.00

CUMULATIVE TOTAL PAID TO PLAYERS $ 54,200,000.00

( TOTAL PLAYOFF MONEY PAID $ 52,000,000.00 )

PLAYOFFS – INDIVIDUAL PERFORMANCE BONUS PAY

CONN SMYTHE TROPHY WINNER : $ 1,000,000.00

TOP 10 SCORERS $ 2,000,000.00 SPLIT 10 WAYS $ 2,000,000.00

TOP 10 ICE TIME $ 2,000,000.00 SPLIT 10 WAYS $ 2,000,000.00

TOP 10 HITS $ 2,000,000.00 SPLIT 10 WAYS $ 2,000,000.00

TOP 10 BLOCK SHOT $ 2,000,000.00 SPLIT 10 WAYS $ 2,000,000.00

TOP 10 PLUS/MINUS $ 2,000,000.00 SPLIT 10 WAYS $ 2,000,000.00

BREAKDOWN

1ST $ 500,000.00 6TH $ 125,000.00

2ND $ 400,000.00 7TH $ 115,000.00

3RD $ 300,000.00 8TH $ 75,000.00

4TH $ 200,000.00 9TH $ 70,000.00

5TH $ 150,000.00 10TH $ 65,000.00

GOALIES

TOP 5 WINS $ 1,000,000.00 SPLIT 5 WAYS $ 1,000,000.00

TOP 5 SHUTOUTS $ 1,000,000.00 SPLIT 5 WAYS $ 1,000,000.00

TOP 5 SAVE PERCENTAGE $ 1,000,000.00 SPLIT 5 WAYS $ 1,000,000.00

BREAKDOWN

1ST $ 350,000.00 4TH $ 100,000.00

2ND $ 300,000.00 5TH $ 50,000.00

3RD $ 200,000.00

TOTAL PLAYOFF BONUS MONEY PAID $ 90,000,000.00

LEAGUE AWARDS AND BONUSES

EACH TEAM WILL CONTRIBUTE $ 3,800,000.00 TO A LEAGUE WIDE FUND FOR AWARDS AND PERFORMANCE BONUSES, FOR A TOTAL LEAGUE WIDE FUND OF $ 114,000,000.00. IT WILL BE DISTRIBUTED AS FOLLOWS:

HART TROPHY WINNER : $ 5,000,000.00

LESTER PEARSON TROPHY WINNER : $ 5,000,000.00

NORRIS TROPHY WINNER : $ 2,500,000.00

ART ROSS TROPHY WINNER : $ 2,500,000.00

VEZINA TROPHY WINNER : $ 2,500,000.00

LADY BYNG TROPHY WINNER : $ 2,000,000.00

CALDER TROPHY WINNER : $ 2,500,000.00

SELKE TROPHY WINNER : $ 2,500,000.00

ROCKET RICHARD TROPHY WINNER : $ 2,500,000.00

MASTERTON TROPHY WINNER : $ 2,500,000.00

JENNINGS TROPHY WINNER : $ 2,500,000.00

1ST ALL-STAR TEAM SELECTION : $ 2,500,000.00 ( $ 15,000,000.00 )

2ND ALL-STAR TEAM SELECTION : $ 1,000,000.00 ( $ 6,000,000.00 )

AWARD NOMINEES RECEIVE $ 1,000,000.00. THIS DOES NOT COMPOUND FOR AWARD WINNERS.

TOTAL BONUS MONEY TO NOMINEES : $ 16,000,000.00

INDIVIDUAL PERFORMANCE BONUS PAYOUTS – LEAGUE WIDE

TOP 10 SCORERS* $ 3,000,000.00 SPLIT 9* WAYS $ 3,000,000.00

TOP 10 ICE TIME $ 3,000,000.00 SPLIT 10 WAYS $ 3,000,000.00

TOP 10 HITS $ 3,000,000.00 SPLIT 10 WAYS $ 3,000,000.00

TOP 10 BLOCK SHOT $ 3,000,000.00 SPLIT 10 WAYS $ 3,000,000.00

TOP 10 PLUS/MINUS $ 3,000,000.00 SPLIT 10 WAYS $ 3,000,000.00

BREAKDOWN

1 $ 1,000,000.00 6 $ 150,000.00

2 $ 675,000.00 7 $ 125,000.00

3 $ 450,000.00 8 $ 100,000.00

4 $ 200,000.00 9 $ 75,000.00

5 $ 175,000.00 10 $ 50,000.00

ART ROSS TROPHY WINNER DOES NOT RECEIVE MONEY FROM THIS POOL. ART ROSS TROPHY WINNER HAS SEPARATE BONUS IN LEAGUE AWARDS.

GOALIES LEAGUE WIDE BONUS PAYMENTS

EACH TEAM WILL HAVE $ 1,000,000.00 OF ITS LEAGUE WIDE BONUS MONEY GO INTO THE GOALIE PERFORMANCE BONUS FUND

TOTAL BONUS MONEY PAID BY EACH TEAM $ 33,000,000.00

CUMULATIVE TOTAL PAID TO PLAYERS $ 58,000,000.00

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